TaxTMI 
TaxTMI 
1982 (3) TMI 26
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....n holding that the sum claimed as 'research and engineering expenses' was an expenditure laid out or expended wholly and exclusively for the purposes of the assessee's business and was accordingly allowable in computing the profits of the said business?" The assessee is a non-resident company and carries on the business of rendering technical services to oil industries engaged in prospecting and searching oil wells. The assessment years are 1964-65 to 1969-70 and the relevant accounting years are the 12 months period ending on 31st March, 1963, and 30th April, 1964, respectively, for the first two assessment years and the calendar years 1964 to 1968, respectively, for the other assessment years. The assessee is one of the subsidiaries of....
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....nbsp; (Overseas) of Canada (SWSC) Electrique (SURENCO) (OVERSEAS) (SOC) (SPE) &....
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....------------------------------------------------------------------------ From the facts found by the Tribunal it appears that the activities of Schlumberger group of companies, were to, provide uniform oil field services throughout the world. For this purpose SWSC and SPE carried on development and engineering activities in the USA and France respectively. These companies were constantly engaged in developing and improving the design, testing and preparation for production of highly sophisticated and specialised sensitive electronic, radioactive and other tools and equipments. These tools and equipments were designed for particular purposes and were handled only by trained Schlumberger engineers working in the field operation and were no....
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....; Rs. 1964-65 1,80,929 1965-66 1,59,446 1966-67 1,74,971 1967-68 2,63,393 1968-69 1,90,965 1969-70 1,79,656 The ITO after taking into consideration the correspondence it had with the assessee rejected the assessee's claim on, inter alia, the following grounds : " (i) As the assessee was not itself carrying on any research activities, the claim cannot be allowed un....
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....ld services and oil field equipment sales and rentals to customers outside the Schlumberger organisation during a given period of time. The term 'total income' shall mean the sum of SWSC income, SPE income, SURENCO income, OVERSEAS income, and SOC income over the same period of time." It provided for the termination of the agreement, the nature of the services and it, inter alia, provided in cl. 2.05 as under: " 2.05 SPE and SWSC each agrees to make available to the Schlumberger companies and their subsidiaries. The results of their engineering and to freely exchange technical data and know-how, it being provided, however, that such results, data, and know-how shall be maintained confidential. " There was a supplemental agreement e....
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....ore, the Tribunal upheld the action of the AAC. It appears to us that having regard to the nature of the business carried on by the assessee, the basis of sharing of expenses of the research and having regard to the fact that the sharing was not on the basis of general revenue earned by these companies but on the basis of revenue earned by incurring these operational expenses, indicate that these were amounts of sharing of expenses for gathering information or knowledge which were utilised by the assessee for carrying on its business for the purpose of earning its profits. The fact that the assessee in this case unlike some other cases was not actually manufacturing goods but was rendering services in a specialised field which can be descri....